Philanthropy has evolved in recent years to embrace business principles. Social impact financing, which offers an investment return to lenders, is a relatively new charity finance tool.
It has entered the voluntary sector alongside traditional public donations and government contracts, opening up new forms of funding for sustainable, scalable development projects.
Programmes based on social-impact investment focus on the need to gather data and to demonstrate measurable results. This rigour is encouraging mainstream lenders to provide investment, bringing new capital into the sector. Such an approach also has appeal for donors such as charities, governments and social entrepreneurs, because it offers proof of the positive impact of their grants and donations as well as opportunity to tackle large-scale development problems and bring about wholesale change for beneficiaries.
The Development Impact Bond: a new form of impact investing
We’re very proud to be spearheading an innovative form of impact investment, in the form of a Development Impact Bond (DIB), enabling us to launch initiatives to improve the quality of education in India. The DIB mechanism involves public-private partnerships with risk investors, service providers and outcome funders. The outcome funders for this particular type of innovative impact bond are charity agencies and philanthropic donors convened by us.
In conversation with Sir Ronald Cohen, who has been called ‘the father of social investment’
What the British Asian Trust is doing in social finance is truly ground-breaking: it is capable of delivering vital social improvement at scale.
Sir Ronald Cohen
How can you engage with us on innovative finance?
The Quality Education India DIB programme is a development from a pilot by Educate Girls in 2015-2018. It is focused on testing and determining how best to drive proven interventions at scale. The Quality Education India DIB programme has incorporated learning from the pilot and has opportunities for adaptation over its four years.
Co-develop and build new and innovative finance mechanisms in South Asia
• Reducing poverty, inequality and vulnerability in the region requires urgent attention.
• We are working in collaboration with local partners and international foundations on new models, seeking to grow the market in South Asia over the next three years.
• Join us on this journey to become
a pioneer and early innovator in
Partner with us on your specific area of expertise to increase our collective impact
• The innovative finance market is nascent and growing. It requires diverse stakeholders to engage, fund and raise the profile of the market’s credibility and potential, through verifiable results.
• Explore synergies by discussing your areas of expertise and interest with our team. Please contact: Abha.Thorat-Shah@britishasiantrust.org or Aditi.Banerjee@britishasiantrust.org
Learn and share knowledge for future best practice
• In convening the Quality Education India DIB over the last two years, we have built significant experience, expertise and a platform to co-develop further DIBs in future, across sectors and geographies in South Asia.
• Work with us to generate new learning for the sector. We are happy to share our experiences.
Education, Livelihoods and Health challenges in the region require urgent attention. We are working on building a number of other initiatives, including a larger outcomes-fund for the South Asia region.Find out more about the Quality Education India DIB and the DIB consortium